In a recent interview for The Wall Street Journal, the United States Department of Justice revealed its determination to limit the use of cryptocurrencies in crimes such as money laundering and financing terrorism. To this end, it formed a unit of federal prosecutors named “The Digital Asset Coordinators Network”. These specialists are expected use their expertise to identify and prevent such crimes from being executed.
At the beginning of 2022, the DOJ created the “National Cryptocurrency Enforcement Team” to track down fraudulent cryptocurrency schemes, specifically cybercriminals from Iran and North Korea. In February, the Department announced Eun Young Choi as the unit’s leader. Choi argued that digital assets have become a go-to financial tool for wrongdoers and a lot of focus need to be attached to the matter.
The importance of the situation has led to the formation of this specialist unit which has been put together to limit the use of cryptocurrencies for crimes. Apart from sniffing out crypto scammers and bringing them to book, the newly-introduced unit will sensitize other government officials on rising problems in the sector such as taxation and environmental problems.
The formation of the “National Cryptocurrency Enforcement Team” has positively impacted the operations of the Department of Justice against criminals. In April, law enforcement agents confiscated around $34 million worth of cryptocurrencies from a hacker on the dark web. The hacker is a South Florida resident who used a fake identity online to sell more than 100,000 illegal products across online marketplaces in exchange for digital assets.
A joint investigation between multiple federal, state, and local authorities identified and tracked the criminal leading to the seizure of 919.3 ETH, 643 BTC, 640 BTG, 640 BCH, and 640 BSV from him. This particular seizure marked one of the largest confiscations of digital assets ever executed by the relevant American authorities.
One month later, the DOJ accused the CEO of Mining Capital Coin (MCC) – Luiz Capuci Jr. – of running a $62 million crypto ponzi scheme. The criminal allegedly promised great returns to users of his platform but then used their funds to purchase luxury items for himself including exotic cars; a Lamborghini, Porsche, and Ferrari. Capuci is facing a maximum penalty of 45 years in prison if the law finds him guilty.
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